The surge in catastrophe bond market issuance and resulting insurance-linked securities (ILS) market growth over the last year, came at the right time for the insurance and reinsurance market, meeting their needs for risk transfer, according to Richard Pennay of Aon Securities.
Pennay, the CEO of Insurance-Linked Securities at broker Aon’s capital markets and ILS specialist unit, noted that the growth of the cat bond and ILS market has served to strengthen the resiliency of the global insurance and reinsurance market.
Highlighting record catastrophe bond issuance and the record returns investors have enjoyed through a period of relatively low catastrophe losses affecting the asset class, Pennay highlighted the record 18% expansion of the market’s capital base through the last year of record in Aon Securities latest annual ILS market report.
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